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Avis Budget Group Acquires Edmonton Budget Licensee

Stocks in this article: CAR

PARSIPPANY, N.J., Feb. 27, 2014 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc. (Nasdaq:CAR) announced today that it has agreed to acquire its existing Budget Car & Truck Rental licensee in Edmonton, Alberta, Canada, comprising 26 rental locations in seven cities in total. This investment of approximately $30 million, plus the cost of acquired fleet, will enable the Company to expand its footprint of Company-operated locations while offering Budget customers a consistently outstanding rental experience and capturing a larger share of Canada's domestic, international-inbound and truck rental spend. 

"Expanding our global footprint and enhancing our customer experience are two of our key strategic growth initiatives. Investing in our presence in Edmonton — Alberta's capital, Canada's fifth-largest city and a world center for the oil, gas and petrochemical industries — is consistent with these goals," said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. "Budget Edmonton has the largest and most diverse fleet in the area and is well-positioned for further growth and prosperity."

Budget has operated in Edmonton since 1963 and celebrated its 50 th anniversary in 2013. Founder Lionel Groberman started with a dozen vehicles and one wash bay attendant, and successfully grew the business to comprise locations today in Edmonton, Cold Lake, Fort McMurray, Lloydminster, Moose Jaw, Regina and Saskatoon, with a fleet of more than 4,000 vehicles.  These locations will now be integrated into Avis Budget Group's North America operating region, and managed by Avis Budget's Canada operations management team.

"This investment will enable us to substantially expand our Canadian fleet and capture a larger share of this expanding car rental market," said Tom Gartland, president, North America, Avis Budget Group. "In addition, by seizing the opportunity now to increase our presence in this market, we will be able to leverage our licensee's established presence and further enhance Budget brand loyalty and our profitable revenue growth."

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